City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00245 4/4/2023 Consent Item 1.
Rejection of Bids for the Intermodal Transportation Facility Sacramento Valley Station Platform Repairs Project (T15029000)
File ID: 2023-00245
Location: District 4, Represented by Mayor Steinberg
Recommendation: Pass a Motion rejecting bids for the Intermodal Transportation Facility Sacramento Valley Station Platform Repairs Project
Contact: Philip Vulliet, Senior Engineer, (916) 808-5092, [email protected]; Judy Matsui -Drury, Supervising Engineer, (916) 808-7610, [email protected]; Ofelia Avalos, Engineering Manager, (916) 808-5054, [email protected]; Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
Additional Description/Analysis
Issue Detail: The Intermodal Transportation Facility Sacramento Valley Station Platform Repairs Project (T15029000) was advertised on November 2, 2022, and one bid was received on December 7, 2023, for $2,830,800. The bid was substantially higher than expected at 80% over the Engineer’s Estimate of $1,576,509.
Rejecting the one bid will allow City staff to refine the project design and materials to either negotiate contract cost with available contractors or re-advertise the project in a more competitive bid environment.
Policy Considerations: The action requested herein is consistent with City API 4002, Section 8.5(b), which requires that rejection of bids for contracts of $250,000 or more must be approved by the City Council.
File ID: 2023-00245 4/4/2023 Consent Item 1.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): The recommendations in this report involve the administrative activity of rejecting a bid and are exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment.
Sustainability: Not applicable.
Commission/Committee Action: Not Applicable.
Rationale for Recommendation: Only one bid was received for the project. The bid amount of $2,830,800 was substantially higher than the budgeted estimate. City staff performed outreach to the contractors to determine whether there were specific issues with the bid requirements or other factors which may have caused the bid pricing to exceed the project budget. Responses received indicated that the material costs for the methods proposed were higher than anticipated and a revised approach may yield more suitable pricing. The project design team will be reviewing these comments in order to revise the project design and procure a contractor for the work.
Financial Considerations: The estimated total cost for the Intermodal Transportation Facility Sacramento Valley Station Platform Repairs Project was $2.5 million. Based on the bid received, the estimated total project construction cost with the apparent low bid is $3.7 million.
It is recommended that this bid be rejected, and the procurement be advanced by either re- advertised when the bidding environment will be more favorable or negotiating bid pricing with available contractors. At this time, staff does not recommend allocating $1.2 million in additional funding to the project to cover the difference.
Local Business Enterprise (LBE): Not Applicable.